SOE Minister Admits It's Not Easy To Lower Fuel Prices Although World Oil's Price Drops

SOE Minister Erick Thohir. (Photo: Mery Handayani/VOI)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir admitted that it would not be easy to immediately lower the price of non-subsidized fuel oil (BBM) such as Pertamax, even though world oil prices fell to 90 dollars per barrel.

The reason, said Erick, is that buying fuel takes time. So that when the price drops, the fuel cannot be directly available in the country.

"If the price of (world) fuel drops, there will definitely be a price correction. But the purchase of fuel is not going down today, tomorrow it will be there, we will buy 3-4 months," Erick told reporters when met at the DPR Building, Senayan Complex, Jakarta, Tuesday, September 20.

"There must be a price equilibrium, it cannot go down immediately," he continued.

Moreover, said Erick, Indonesia's status as a fuel importing country makes it difficult to determine the selling price to the public. Because, must follow the development of world oil prices.

Since 2008, Indonesia is no longer a member of oil exporting countries or OPEC.

Erick said that Indonesia has been included in the category of countries that have imported fuel since 2003.

Erick explained that this was not known to the public.

According to him, the public thinks that Indonesia is still a fuel-producing country.

In fact, Indonesia is currently importing more oil.

"We have imported fuel since 2003, meaning we are an importing country. People (think) as if we are still a fuel-producing country, true, but we import a lot. Because Indonesia's population may have been (formerly) a hundred million, now it is 300 million. Of course, users of this car are increasing," he said.

Erick said that the adjustment of Pertamax's price from IDR 12,500 per liter to IDR 14,500 per liter was the government's effort to divert subsidies to make it more targeted.

"Today, there is a reduction in the subsidy compared to its price," he said.